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Based on Birinyi Associates' proprietary market and sector indicators, we are at short-term extremes. Traders with aggressive accounts should look to take profits, and investors with more long-term accounts should be cautious on taking new positions. Consumer discretionary, technology, and materials stocks are the most extreme, while health care and utilities names have lagged.

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The Overbought/Oversold indicators are short-term measures, while the momentum indicators above are for the longer term. The momentum indicates that the market can certainly go higher, but we have had an abrupt move and some consolidation should be expected.

Source: Market at Overbought Extremes: Not the Time to Buy